- 4 - Section 162(a) allows as a deduction "all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business". The question for consideration is whether petitioner is entitled under section 162 to deduct the cost of the meals with Dr. Zimmerman.1 Petitioner bears the burden of proving that the expenses in question are ordinary and necessary business expenses. See Rule 142; Welch v. Helvering, 290 U.S. 111 (1933). "Daily meals are an inherently personal expense, and a taxpayer bears a heavy burden in proving they are routinely deductible." Moss v. Commissioner, 80 T.C. 1073, 1078 (1983), affd. 758 F.2d 211 (7th Cir. 1985). In Moss, members of a law firm met daily at a local cafe to discuss work-related matters. As in the instant case, the noon hour was chosen as the most convenient and practical time for the firm to hold meetings. This Court acknowledged the valid business purposes for the lunch meetings, but nevertheless held the costs of the meals to be nondeductible personal expenses, rather than ordinary and necessary business expenses. we are convinced that petitioner and his partners and associates discussed business at lunch, that the meeting was a part of their working day, and that this 1 Sec. 212, which applies to nontrade or nonbusiness expenses that are costs of producing income, and sec. 217, which applies to moving expenses, are not at issue in this case. Nor were the expenses incurred while petitioner was traveling away from home.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011